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Adjustable Rate Mortgage
What is an Adjustable Rate Mortgage?An adjustable-rate mortgage is a home loan with an interest rate that varies over the life of the loan. Usually, the initial interest rate is locked in for a specific time period. After that, the interest rate will change periodically based on market conditions and the terms of the loan.
Features that could save you money
- Interest rate adjusts periodically to reflect market condition within a predetermined time frame. There may not be a cap on interest rate increases.
- Initial period may offer a lower rate. At the end of the initial period, the interest rate and monthly payments may change.
- Initial rate can be locked in for different time periods.
- Suited to people who don’t plan to stay in their home for a long time.
- You’ll be able to select the initial interest rate period.